November 15, 2022

JMMB Group Limited (JMMBGL) for the six months ended September 30, 2022, booked net interest income of $5.70 billion (2021: $5.82 billion), a decline of 2% year over year. For the quarter, it declined 6% to close at $2.79 billion (2021: $2.96 billion).  Of the six-month net interest income:

• Interest income increased 25% to $16.50 billion (2021: $13.15 billion)
• Interest expense increased 47% to $10.80 billion (2021: $7.33 billion)

Fees and commission income for the period amounted to $3.14 billion (2021: $2.52 billion), a 25% increase year over year. Foreign exchange margins from cambio trading recorded a 33% increase to $1.62 billion (2021: $1.22 billion), while net gains from securities trading showed a 53% decline to $1.84 billion (2021: $3.88 billion). Dividend income increased 271% to $95.81 million (2021: $25.81 million).

Operating revenue net of interest expense declined 8% to $12.39 billion (2021: $13.47 billion). For the quarter, it declined 12% to $5.84 billion (2021: $6.60 billion).

JMMBGL recorded an impairment loss on financial assets of $843.66 million (2021: $502.43 million), 68% increase year over year.

Operating expenses increased 12% to $9.96 billion (2021: $8.86 billion) which led to an operating profit of $2.43 billion (2021: $4.61 billion), a 47% decline year over year.

Other income booked for the period soared 871% to $36.64 million (2021: $3.78 million). JMMBGL also booked share of profit of associated companies of $2.16 billion (2021: $2.08 billion).

As such, the JMMBGL booked profit before taxation of $3.79 billion (2021: $6.19 billion), 39% less year over year.

Following taxes of $159.95 million (2021: $700.81 million), net profit declined 34% to $3.63 billion (2021: $5.49 billion). For the quarter, it totalled $1.65 billion (2021: $3.55 billion), 54% less year over year.

Net profit attributable to the shareholders of the company totalled $3.47 billion (2021: $5.13 billion), a 32% decline year over year. For the quarter, it totalled $1.55 billion (2021: $3.42 billion), 55% less year over year.

Total comprehensive loss attributable to shareholders amounted to $7.93 billion (2021: income of $6.26 billion). For the quarter, it amounted to $2.26 billion (2021: income of $3.21 billion).

As a result, earnings per share (EPS) for the six months amounted to $1.77 (2021: $2.62), while the EPS for the quarter was $0.79 (2021: $1.75). The twelve-month trailing EPS amounted to $5.00 where the number of shares used in the calculations amounted to 1,955,552,532 units. Notably, JMMBGL’s stock price closed trading on November 15, 2022 at $36.56 with a corresponding P/E of 7.31 times.

Balance Sheet at a glance:

Total assets as at September 30, 2022 amounted to $637.85 billion (2021: $562.48 billion). This was mainly attributable to ‘Investment and resale agreements’ which amounted to $336.74 billion (2021: $302.37 billion).

Shareholders’ equity totalled $46.51 billion (2021: $64.73 billion). As a result, book value per share stood at $23.78 (2021: $33.10).

Disclaimer:

Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.